PepsiCo, Mondelez Shares Jump on Merger Rumors

PepsiCo and Mondelez shares are jumping Friday on speculation that Nelson Peltz will pursue a merger of the two companies.

NEW YORK ( TheStreet) -- PepsiCo ( PEP) and Mondelez International ( MDLZ) shares were surging Friday on speculation U.S. activist investor Nelson Peltz may pursue a merger of the two companies after amassing critical stakes in both companies.

Mondelez, which sells brands such as Cadbury, Nabisco and Oreo, was popping 4.6% to $29.88 and PepsiCo was gaining 3.5% to $78.81.

Peltz may pressure PepsiCo to split its snack and beverage units or even push to force the two companies to merge, according to the Telegraph. Some investors may be in favor of these proposals as shareholders have previously urged a split of PepsiCo's more profitable snacks unit, which sells Lay's potato chips and Doritos tortilla chips, from its lagging beverage division.